EUR/USD Is Range-bound And Cannot Pick A Direction

After the pair reached the local high at 1.20924 – which is the highest high since 4th January 2015 - the pair dropped with about 70 pips and remained within the range which has continued for two weeks now.

I expected a quicker move to the downside, but it is obvious that the bulls refuse to give way so quickly, and the bears aren’t active enough.

If we look at the monthly time frame we’ll notice that the pair is at a very strong support level, and it is not certain that it will break out below it.

Which are the most probable scenarios?

The pair could test of the local high at 1.20924 and even 1.2100 before it reaches a new high at 1.2150.

The next possible scenario is a lengthly range and the formation of a double or a triple top and then a corrective drop to 1.1750 and 1.1500.

A rally to the upside above 1.2150 seems less likely without a correction first, but still, let’s see which scenario the market will pick.